APAN Insurers to Cut Iran Oil Insurance Coverage.Summary: APAN APAN Asia Pacific Area Network
APAN Acetone Peroxide Ammonium Nitrate (high-order explosive)
APAN AEGIS Performance Assessment Network
APAN Association of Professional Aerial Navigators Insurers to cut cargo insurance coverage by over 50 pct-Nikkei; Reflects European firms' move to halt reinsurance The contract made between an insurance company and a third party to protect the insurance company from losses. The contract provides for the third party to pay for the loss sustained by the insurance company when the company makes a payment on the original contract. on Iran oil
Japanese nonlife insurers are in talks with Japanese buyers of Iranian oil to slash cargo insurance coverage for transporting Iranian crude reflecting the EU's move to prohibit European insurers from providing reinsurance, industry sources said on Wednesday.
A ban on European insurance cover for Iranian oil exports from July 1 is threatening to curtail shipments and raise costs for major buyers. Japan and South Korea have lobbied for exemptions, but insurance and shipping executives say a complete ban now looks likely.
Tokio Marine & Nichido Fire Insurance, Sompo Japan Insurance Sompo Japan Insurance Inc. (株式会社損害保険ジャパン and Mitsui Sumitomo Insurance are among those that have approached Japanese oil refiners to cut coverage for Iranian oil and petrochemical shipments by more than 50 percent, the Nikkei business daily said on Wednesday.
A source with a Japanese buyer of Iran crude said it has been approached by at least two of those insurers regarding the cut, but added it was not yet in talks to discuss the details of what the cuts might be.
"We like to settle the issue by the end of the month or early next month," the source said on condition of anonymity. "It will have an impact (on procurement of Iran oil), but it's hard to say now to what extent that might be because the issue is complex."
The major insurers are also aiming to add waivers for war risk insurance and hull cover, which protects vessels against physical damage, to stop insuring while carrying Iranian oil, the source added.
International sanctions International sanctions are actions taken by countries against others for political reasons, either unilaterally or multilaterally.
There are three types of sanctions.
The word underwrite has two meanings. the trade, and banks to clear payments for Iran's principal export.
The European Union partly exempted some insurers from its embargo on the Iranian oil trade until the start of July and next month EU ministers plan to review whether to extend these waivers. (Reporting by Osamu Tsukimori; Editing by Edwina Gibbs)
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